Negotiating Basics (part 6) - BATNA
Learn what BATNA stands for and what it means in the context of negotiating. In this video learn the 3 step process for determining your BATNA for your negotiation and how to compare it to a proposed agreement.
BATNA Example from PON - Program on Negotiation at Harvard Law School
As the renewal deadline for Sam’s homeowner’s insurance policy approached, he decided to do a “market check” to compare prices. Sam’s existing insurer – let’s call it Acme – had been raising rates by 7% and 10% annually for the past three years, and Sam wasn’t sure he was getting the best deal. He then found a carrier that offered a policy for 30% less than Acme’s renewal rate.
Delighted, Sam came very close to switching to the new insurer. But after doing some digging (and receiving some self-interested guidance from Acme), Sam identified important coverage and term definitions buried deep in the legalese of the two policies. After going through a translation process to make the prices comparable, Sam realized that Acme, his current insurer, was offering him a better deal (see also, Negotiation Skills – Three Sources of Power at the Bargaining Table to learn more about power in negotiations and how knowing your BATNA helps negotiators to make solid strategies for the negotiation table).
Reference:
by Roger Fisher and William Ury
Thank you for visiting Hatchett Project.
Be sure to check out our other project management posts and videos.
